Money saving tips
In the early stages of setting up a business you need to be especially careful with your spending. Making your money last longer is important as it may mean the difference between a successful startup and having to abandon your dreams through financial pressure. Here are some money saving tips for small businesses.
Subsidised support and training
Some local business centres include free or subsidised support services such as advice and training. Your local council may provide low cost business premises (e.g. serviced offices) which may be useful if your business holds regular client facing meetings. Local business colleges may also offer subsidised training courses. The Federation of Small Businesses (http://www.fsb.org.uk) and the Forum of Private Business (http://www.fpb.org) both offer members money-saving opportunities as well as business advice and many other invaluable services such as legal advice and advertising.
Inform HM & Revenue
If you have just become self-employed you have to inform HM & Revenue within 3 months otherwise there is an automatic £100 penalty.
You can find the necessary registration form on the HM & Revenue website: www.HMRC.gov.uk.
Outsourcing work to students
Offering work experience opportunities to students who will work on projects for low or no cost is a great way of saving money. This also allows you to experience management and vet candidates for permanent hire.
Use your home for office space
If you have enough space, you can use a room in your house as an office instead of renting out office space.
HMRC has recently relaxed it's rules. Just make sure that you are not exclusively using one room for business. For more information have a look at the HMRC website.
Keep on top of your bookkeeping
It is very important to keep on top of paperwork otherwise you run the risk of forgetting to pay your bills or failing to invoice customers.
Keep track of your VAT and Tax Returns
Make sure you keep track of your VAT and complete accurate tax returns. VAT is a tax that's charged on most goods and services which you can claim back if you are a VAT registered business. If you need additional help, have a look at: http://www.hmrc.gov.uk/sa/index.htm
Use Online Banking
Make your life easier by using online banking. It saves you time and is an easy way to keep track of your balance and spendings. Make sure you don't go over your authorised bank limits.
Keep track of your spendings
Take control of your sales revenue through documenting quotes, orders and invoices. Making spreadsheets or using accounting software can greatly help you break down your cash flow.
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